What debts and other obligations will fall on the condo or homeowners association if it forecloses on its lien for unpaid assessments?
Like any unit owner, the association will be responsible for taxes, utilities, insurance and maintenance. The association should secure the unit or home and make sure the HVAC and other systems are functioning properly. It is not necessary to pay the real estate taxes because eventually the property could be sold at a tax sale, which results in a new owner taking over responsibility for condo or HOA assessments. Our Helpful Resources page features an article discussing the dilemma of condo/HOA lien foreclosure in the current bank foreclosure crisis.
Related Questions
- If my condo or HOA forecloses on its lien for unpaid assessments and takes title to a home, is the association responsible for the mortgage payments?
- What can the condo association or HOA do to recover past due assessments if it forecloses on its lien and takes title?
- Should a condo association or HOA accept payment plans for unpaid assessments?
